Silicon Valley company paid Indian employees just $1.21 an hour

While many Americans fight for the government to increase the minimum wage across the country, one Silicon Valley company has now been penalized for paying some foreign employees dramatically lower wages.

The fine was handed down
by the US Department of Labor after it discovered that
Electronics for Imaging (EFI) flew eight employees in from its
office in Bangalore, India, and paid them the equivalent of $1.21
an hour, the San Jose Mercury News reported this week. The
foreign employees were called in to help install computers for
the Fremont, California-based company, which paid them in Indian
rupees.

Additionally, these employees worked extensive hours – up to 122
hours a week in some cases. They were employed inside of the
United States last year from September 8 until December 21.

"We are not going to tolerate this kind of behavior from
employers," said Susana Blanco, district director of the US
Labor Department, according to the Mercury News.

Blanco added that the Labor Department decided to investigate the
situation after receiving an anonymous tip, adding that more will
be needed to uncover further abuses by other companies.

As a result of these violations, EFI was ordered to pay back more
than $40,000 in back wages based on California’s own minimum wage
of $8 per hour. The company was also fined an additional $3,500.

Although not well-known around the US, EFI is an international
corporation that focuses on digital and inkjet printing
technology. Just one day before these abuses were reported, the
company posted third quarter revenues of almost $200 million.

In a statement to the newspaper, EFI’s Beverly Rubin called the
violations an “administrative error” and said it would
not happen again.

"During this assignment, they continued to be paid their
regular pay in India, as well as a special bonus for their
efforts on this project," Rubin said. "During this
process we unintentionally overlooked laws that require even
foreign employees to be paid based on local US standards."

Nevertheless, the $1.21-per-hour wage is the lowest Blanco has
ever seen in Northern California since 2012, when Bloom Energy
was fined for paying Mexican employees just $2.66 an hour for
repairing generators.

"It is certainly outrageous and unacceptable for employers
here in Silicon Valley to bring workers and pay less than the
minimum wage," said Alberto Raymond, a Labor Department
assistant district director, to NBC News.